Brief

Retailers launch beauty studios and community hubs as AI reshapes shopping

Target opened beauty studios in over 600 stores while Foot Locker unveiled a community‑focused sneaker hub, saying physical experiences remain vital.

By Felo News Desk · Published Tue, 13 Oct 2026 19:35:22 GMT

At a recent gathering of major retailers in Nashville, Tennessee, executives said AI tools are now used by about 70% of shoppers, yet they remain confident that physical stores can still thrive.

What happened

Target rolled out "Target Beauty Studios" in more than 600 locations last month, offering hands‑on testing of hair‑care, skin‑care and fragrance products. The studios are staffed by beauty advisors who provide personalized recommendations, allowing customers to smell, test and ask questions before purchasing.

Foot Locker partnered with Nike to open "The Crenshaw Rec by Foot Locker" in California. The concept store blends exclusive merchandise with a limited‑edition fashion line by designer Gavin Mathieu and includes community programming such as workshops, pop‑ups with local businesses and a hiring focus on the neighbourhood.

What the reports add

The Independent notes that a recent LDWW study found 70% of consumers use AI tools to shop, while a Gartner Marketing survey reported a third of people plan to rely on AI for holiday‑gift recommendations. Despite these figures, Target’s senior vice‑president Amanda Nusz described the studios as "an inspiring destination to discover what's new, now and next in beauty," emphasizing the need for tactile experience.

Foot Locker CMO Brett O’Brien said the Crenshaw Rec reflects the brand’s commitment to investing in the communities that have shaped sneaker culture, highlighting a hyper‑local approach that integrates local style into product offerings.

What was said

"I think shop‑in‑shops can be so powerful when they are done correctly," Dwight Allen O’Neal, founder of retail consultancy Christell on Pine, told The Independent.

"Especially in beauty, consumers want to know, ‘Is this actually going to work for me?’" O’Neal added, noting that the ability to test products builds confidence before spending.

"The store’s ‘joyous’ vibe and helpfulness of its employees were a big reason why" Foot Locker’s statement highlighted, though the quote is truncated in the source.

How it came about

The push for experiential retail follows broader industry concerns that AI could erode foot traffic. Earlier this year, retailers have experimented with pop‑up concepts and digital‑first strategies, but the Nashville event underscored a belief that human interaction and tactile experiences remain a differentiator.

Key facts

Target launched beauty studios in over 600 stores offering hands‑on product testing. (independent.co.uk)
Foot Locker opened a community‑focused sneaker hub with Nike in California. (independent.co.uk)
Around 70% of consumers use AI tools to shop, according to an LDWW study. (independent.co.uk)
A third of shoppers plan to use AI for holiday‑gift recommendations, per a Gartner survey. (independent.co.uk)